El Salvador Bitcoin holdings exceed $616M
Salvador doubles down on its Bitcoin reserve strategy despite IMF constraints.
El Salvador is doubling down on its Bitcoin reserve strategy even after agreeing to IMF terms that made Bitcoin payments voluntary.
The country recently purchased 11 additional BTC on February 4—worth over $1 million—bringing its total holdings to 6,067.18 BTC, currently valued at approximately $616 million, reports Cryptopolitan.
Steady Accumulation Amid Regulatory Changes
Despite pressure from international institutions, El Salvador has maintained its aggressive Bitcoin accumulation. According to data from the Nayib Bukele Bitcoin tracker, the nation has purchased more than 20 BTC in the last seven days alone.
This development follows a landmark $1.4 billion deal with the International Monetary Fund that required the government to make Bitcoin payments voluntary, restrict public-sector involvement, and privatize its Chivo wallet. Critics feared that the IMF deal would slow down Bitcoin-related activities, but the recent transactions suggest that El Salvador remains committed to building a substantial digital asset reserve.
Mixed Reactions and Future Implications
The evolving Bitcoin policy in El Salvador has drawn mixed reactions globally. Supporters praise President Nayib Bukele’s persistent strategy, arguing that Bitcoin’s adoption enhances economic diversification and financial inclusion. They point to the country’s “buy one Bitcoin a day” approach as a visionary policy that has already yielded significant gains—reportedly a 129% profit with an average purchase price of around $46,000 per coin.
On the other hand, skeptics and some international observers warn that the volatility of Bitcoin and the regulatory environment could pose risks. A recent report by the Spanish newspaper El País noted that El Salvador’s reformed Bitcoin Act now renders Bitcoin voluntary, meaning merchants are not forced to accept it as payment, and it cannot be used to pay taxes.
As global market dynamics evolve, investors and policymakers will be closely monitoring El Salvador’s Bitcoin reserve strategy. The nation’s continued accumulation of Bitcoin, even under IMF constraints, could offer insights into the long-term viability of digital assets as a state-held financial instrument.
Recently we wrote, that El Salvador is accumulating Bitcoin despite restrictions from the International Monetary Fund (IMF).
